Banking
The
Brief
Developed and implemented a Business Case for information
technology investment decisions; provide structure,
procedures and training
The Result
Benefits exceeded 3.5 Million pounds as well as a better
customer/client relationship on multi-million pound
investment in telecommunications and computer technologies
worldwide
Global Airline
The Brief
To radically change the culture of the airline worldwide
to make it attractive for Privatization. Change pilot
and engineering centric culture to customer centric.
The Tools
Leadership development and training by staff;
- Reorientation through “top-down”
leadership practices;
- Lateral reorientation of mid-management;
- Employee training;
- Cabin crew training for customer
service;
- Front desk training for customer
service playing the “Hunter” role;
- Re-engineering of finance function
(identifying bottlenecks in processes);
- Business Acumen modules for managers
using data gathering and analysis, risk management,
Supplier/customer representation in modules
- Training management for large-scale
change (organizational development, preparing front
line staff for change, focus groups, selling/ processes
and monitoring opinions);
- JLA created SPEEDWING, the internal
consulting activity for the group and JLA called in
from time to time for a tune up;
- Outsourcing;
- Developing a strategy for securing
union acceptance of changes.
The Result
The JLA programs transformed this airline from a pilot
and engineer-centric enterprise to customer service
leader thereby creating the “world’s favorite”
and most profitable major airline.
Leading Computer Manufacturer
Scope
Financial performance against budget was restricted
by too many initiatives of unknown value requiring too
many resources which were not allocated against risk
/ reward. Map current processes and practices in the
project management group and departments with whom they
interact. Implement improved processes and knowledge
sharing with customized web-based tool.
Result
JLA implemented a performance management system with
decision points and rules based on risk management.
This model focused resources, reduced lead times by
half, improved alignment of multi-departmental activities
and greatly improved management’s ability to execute
the strategy. The project was completed over a seven
month period.
Client’s comment: “This
is the most successful project we have ever done.”
Auto Tire Manufacturer
Scope
Analyze and reengineer process flow with emphasis on
identifying efficiency improvement opportunities. Implemented
automated scheduling system and continuous improvement
model installed.
Result
Structured an implementation plan to achieve overall
cost savings of $18 million dollars. Within 6 months
after project completion, client’s actual annualized
cost reduction was $22 million.
Mining
Are we too lean at head
office? Do we need more people to support our global
operations?
The Brief
To identify areas to “smartly upsize”
corporate staff as and when field operations increased.
- To develop a process around roles
and responsibilities, measurements and metrics to
align corporate and the various world-wide operating
divisions to determine clear accountability for managing
Safety and Environment, Risk mitigation
The Result
- Critical restructuring changes at
Corporate level
- Decisions brought closer to the
Operating Functions
- Leadtime on decisions reduced
- Increased responsibility &
accountability among Operational heads.
- Financial benefits – “Saved
me 1 Million dollars a day” - Frank Pickard
Delivering a Better Train Service
For Less
The Need
This complex Subway had a problem with a deep rooted
culture of demarcation and restrictive practices within
its train operations department. This department was
staffed by over 4000 people and had an annual operating
budget of some $ 200 million. Poor planning, management,
scheduling and regulation of the service had led to
a decline in service revenues; exacerbated by an economic
downturn and other ridership loss associated with service
quality.
JLA’s Approach
A key finding from the JLA analysis was that only half
of the paid working day was spent by the train crews
actually driving trains. The client/consultant focus
team introduced a number of changes to overcome these
problems. JLA worked with the management team to develop
process and operations management improvement knowledge
through an understanding of the various restrictive
practices in that area. This approach enabled plans
to be implemented that were realistic, achievable and
worthwhile.
Key Activities
- Service Quality Enhancement 1 and
2 (SQE I & II): Past measurements of ridership
and service quality had shown that they are directly
correlated. SQE Training programs were introduced
and interactive workshops were developed with all
of the 4000 staff to heighten their awareness of their
contribution to service quality.
- Train Service Planning Model: This
computer model was developed with a graphical user
interface that could directly show the effects of
poor service quality on customers.
- Dynamic Staffing : The current staffing
methods were controlled by constraints of many years
of modification of fragmented and negotiated agreements
which resulted in unnecessary complexity and inflexibility
of staff utilization. Adjustments to the working day
and the place in which staff reported for work, significantly
improved the amount of the working day a train crew
could be driving for.
Client Benefits
- Cost savings associated with dynamic
staffing were made yielding $16 million.
- Customer satisfaction increased
and revenue returns of $50 million were achieved by
reducing waiting times by 0.2 mins and overall journey
times by 5%.
- The company and the employees had
the benefit of a newly negotiated far more flexible
staff agreement which included employee incentives.
Transportation -
Multiple projects within company plan
A New Approach to Transportation
Strategic Planning
The Need
Having invested heavily over the years in fixed assets
this rail tranportation serviced provider was interested
to what extent softer investments in people and processes
were able to yield the same or similar benefits. Public
sector clients often find it difficult to achieve true
financial evaluation of potential projects as there
is often no or little contribution to profit or return.
Traditional accounting methodologies like the Internal
Rate of Return are meaningless and a process of social
cost benefit analysis is used.
JLA’s Approach
JLA worked with small multi - disciplined teams of client
personnel to evaluate possible customer service driven
investment strategies. These strategies were applied
using a technique called; Quality Function Deployment
(QFD).
Key Activities
QFD: The teams developed a number of QFD matrices which
on one axis listed the customer requirements and on
the other the various strategies of satisfying the customer
demands. A ranking system was used to assess the degree
of correlation between the customer demand and the potential
strategy to satisfy it. 2 major categories were developed,
those targeting overall Journey Time improvements and
those targeting overall Journey Quality Improvements
- Investment evaluation:
The use of the QFD matrices was coupled with market
research on willingness to pay for the various transit
services offered. A numerical index could be produced
for the costs and benefits of each potential option.
Far better targeting of investment spend was therefore
possible. The teams then developed investment strategies
based on packages of their identified solutions. These
were evaluated using social cost benefit criteria.
- Relevant Application:
This approach allowed full financial evaluation of
a number of potential strategies from a business standpoint
in a “not for profit business”. Moreover,
it also allowed the less tangible forms of investment,
like investments in staff training to be properly
evaluated. We at JLA often find that these investments
are often afterthoughts or are given little weight
when evaluated against the hard purchase of assets
like new trains or a new signaling system. The QFD
technique has been very successfully employed in Japanese
car design for a number of years. The JLA application
of the technique was an innovative solution to a complex
problem for most public service organizations.
Client Benefits
JLA achieved in excess of 150% of projected benefits,
representing
a 7:1 R.O.I.
- Our client states that savings
in capital avoidance from this project are in excess
of $40 Million.
- The technique is a current part
of this company’s investment evaluation process.
- The technique can be employed on
any investment decision
Automotive Aftermarket
Scope
Map current processes in the distribution system. Assess
daily activities and work load. Identify implementation
plan to improve processes, cycle times and training.
Implement improvements.
Result
This project was completed in 8 months, with client
complementing JLA on thoroughness of delivery –
most pleased with improved employee morale and commitment.
Achieved annualized ROI of 6 to 1.
Improve Scheduling, Planning
and Operations to Increase Ridership
The Need
JLA helped his European mass transit provider of rail,
tram and bus services recognize the value front line
staff has in their day to day interaction with the customer
and their ability to better manage the service.
These included designing and implementing
improved station practices, implementing a “manager
on the railway” one day a month for all management
staff, developing an electronic maintenance data base
and improved maintenance practices across the system.
JLA documented new business processes and created new
roles. For example, a new type of Station personnel
was recruited from within and trained in accountability
for quality within the Stations (RPQS).
JLA’s Approach
JLA set up small teams of front line staff coached and
facilitated by one of our consultants. The primary aim
was to set best practice standards for customer service
and then apply them as the norms across the front line
areas of the organization. We established teams by taking
a slice through the organization and by ensuring that
the front line employees were adequately represented.
Each team had a specific purpose, one team which was
designed just to improve Bus and Rail headways.
Key Activities
- Identification of Best Practice:
The key focus of the teams was to observe their own
examples of best practice and to credit fellow workers
with their ideas. This approach meant that the changes
were not imposed but rather introduced from what people
had observed their colleagues doing well. This was
important in a culture that was more strongly biased
to the technical nature of the job rather than the
customer interaction.
- Management by Example: A major part
of the changes was to show our clients front line
people just what the effects of good and bad service
can be. The pilot was done in an area which had the
lowest levels of overall customer satisfaction for
the services it provided at the start of the project.
- Simple Tools: Video recording of
good and bad practice was introduced with client personnel
clearly enjoying identification of both types, highlighting
differences at the team working sessions.
- Professional Support: The JLA consultants
acted as trainers and coaches running a number of
sessions and workshops with the client staff. This
technique has been used successfully across a diverse
number of organizations including retail, information
technology, banking and transportation.
Client Benefits
- A measurable improvement was made
in customer service.
- The number of customer complaints
decreased by 25%.
- Revenue improved in the area of
the operation
- The Jubilee was a success
- On a recent trip to Rome People
talk of the Jubilee as a renaissance for the Transportation
improvements.
- Client staff had the benefit of
being involved in the setting of their work standards
and were more motivated.
- The standards manual became a document
from which training and recruiting strategies could
be compiled.
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